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Jefferies Bache is abandoning the London Metal Exchange's open-outcry floor after joining it 14 months ago, citing a lack of demand caused by the shift to electronic trading. LME, however, said that despite this departure and others, it has no plans to close the trading pits.

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A structural issue has closed the London Metal Exchange's office, prompting the exchange operator to shift open-outcry trading to an emergency site in Chelmsford, England. "The structural issue does not involve the LME premises, but, as a precaution, the landlord has temporarily closed access to the whole building," according to the LME.

JPMorgan Chase is shifting to electronic metals trading and away from open-outcry trading on the London Metal Exchange, leaving nine firms trading in the ring. The bank today will drop to Category 2 LME membership. "We continue to be committed to facilitating LME markets," said Michael Camacho, JPMorgan's head of commodities.

The London Metal Exchange says it does not expect to do away with its long-standing open-outcry trading. It is getting ready to invest in technology for improving the facilities at the "ring" where its open-outcry business is conducted.

The London Metal Exchange says that not only will it hold on to its open-outcry trading pit, but it also plans to invest $1.7 million in technology for it. CEO Garry Jones says the exchange will retain the open-outcry trading ring "for as long as the market needs it."

Charles Li, CEO of Hong Kong Exchanges and Clearing, which owns the London Metal Exchange, said Wednesday at the FIA conference in Singapore that HKEx will likely make a decision sometime next year on whether to continue the open-outcry trading pit at LME. "It is something that makes a lot of sense for a long time, so there must be a great reason for it to be there. We will be looking at it, and will look at it with an open mind," Li said.